Paladin reports 2004 Indonesian oil, gas production
Thursday, March 17 2005 - 07:47 AM WIB
?Approximately half of the year-on-year comparative decrease is a result of the impact of higher oil prices on reported entitlement barrels, while the balance is due to natural production decline,? Paladin said in its 2004 preliminary results report.
Paladin's Indonesian production was from the South East Sumatra PSC (SES) and the Offshore North West Java PSC (ONWJ) areas, where the company holds 7.48 percent and 2.45 percent of working interest respectively.
Paladin said that as of December 31, 2004, its working interest in the blocks' proven an provable reserves were 18.2 million barrels of oil, and 32.9 billion standard cubic feet of gas.
Paladin also said infill drilling activity resumed in SES PSC (2,916 bopd Paladin net entitlement in 2004), but not at a pace sufficient to arrest the natural decline of the fields. Further technical work is underway to identify development opportunities, the company said.
Meanwhile, in ONWJ PSC (1,053 boepd Paladin net entitlement in 2004), development of the APN gas fields was progressed, with a view to meeting the increased capacity required for the renewed gas sales contract. Technical studies have continued to identify infill opportunities in the oil fields.
At the end of 2004, SES PSC signed a gas sale and purchase agreement with state-owned electricity firm PT PLN, under which the PSC will sale of 80 BBtud of gas over a 13 year period starting in 2006.
?An engineering, procurement, construction and installation contract has been awarded for the facilities required for the gas development (at SES PSC),? Paladin said.
Paladin added that preliminary discussions were being held with potential gas buyers to enable commercialisation of the remaining uncontracted gas in ONWJ PSC. (Robert)